Is profit-taking the reason for gold price uncertainty?

Is profit-taking the reason for gold price uncertainty?

Gold prices have reached remarkable heights this year, but there have been recent signs of volatility that have investors on alert. According to information from finance.net Gold prices rose to a record high of $2,787.29 an ounce by the end of October before falling 3.1 percent in November. This correction comes after an impressive annual gain of around 30.56 percent through early December, raising questions about whether a Christmas rally is on the horizon for gold investors. Saxo Bank sees the uncertainties in world politics, such as the Ukrainian-Russian conflict and the effects of the US election, as important influencing factors.

Forecasts and influencing factors for 2025

The future of gold prices in 2025 will be shaped by various economic and political factors that have already begun to influence the markets. After Donald Trump's triumphant election victory, which caused some turbulence, the gold market appears more stable after a short correction. Experts from German business news highlight that Trump's expansionary debt plans could increase the risk of inflation, making gold a preferred investment. Geopolitical tensions, such as the threats in the Russia-Ukraine conflict, are also causing investors to increasingly rely on gold, which is considered a safe haven.

Current gold price forecasts are nuanced: While Commerzbank expects moderate development, Goldman Sachs sees potential for an increase to up to $3,000 per ounce by the end of 2025. The impotence of the US dollar and opaque international markets could have a worrying impact on market values, but at the same time fuel demand for gold as investors look for stability. Given the ongoing uncertainties, gold remains a key component for safety-oriented investors.